In this excellent book, a tour de force of investigation, insight and compelling writing, the author starts by informing us that in 2008, the US Senate and House of Representatives created "Public Service Recognition Week" which runs from May 5 through the 11th. Of course there were all manner of proclamations commending the nation’s noble public servants. California felt it necessary to add yet another recognition day for its own employees. Forgetting for a moment that many of them perform jobs that should either be eliminated or handled by the private sector, these workers are extremely well paid for their “services” and no more deserve a week of commendations than do roofers, car mechanics, taxi drivers and journalists.
Yes, it seems most of us just take for granted that public employees are somehow special and deserve to be coddled and indulged but only, the author implies, because we have been had by a coordinated campaign by politicians, government agencies and public service unions who have offered a “constant drumbeat seeking to elevate public-sector workers above the rest of society”.
In chapter one some examples are given that will be covered in more detail later on:
- One million California State employees have special license plates that allow them to ignore citations for all manner of infractions.
- Federal workers, on average, are paid almost 50% more than equivalent employees in the private sector.
- Public sector pensions start as early as age 50 that provides pay for life, often an amount per year greater than the retiree has ever earned in any year of employment.
- The Washington Post reports that “the funds that pay pension and health benefits to police officers, teachers and millions of other public employees across the country are facing a shortfall hat could soon run into trillions of dollars.” And in a scary related note, “courts have ruled that the promises made by elected officials to government unions are ironclad contracts that must be kept”.
- We learn that in Vallejo, a city of 120,000 north of San Francisco, there are 190 firefighters. 21 of them earn more than $200,000. 77 of them earn more than $170,000. They will retire at or near 50 and enjoy another 30-35 years on the average at similar levels of retirement pay. In anticipation of this perhaps, they have been observed spending their time “going abalone diving, grilling tri-tip and drinking cocktails on the public dime” according to the SF Chronicle. The author goes on to reveal that downtown Vallejo is decrepit in large part because the city has no money to spend after paying their public service workers in this manner. Despite this overspending on public safety, city officials have warned citizens to be judicious in their use of 911 calls!
- Mr. Greenhut refers us to www.californiapensionreform.com/calpers where you can search a database of over 5,000 government retirees who are receiving over $100,000 and up to $500,00 per year. Recipients include those who held rather ordinary jobs at small cities, water districts and universities and also police, firefighters and other safety workers who got to retire in their 50’s. Being over 50 myself, I couldn’t help but think about how much I would have had to save per year in the private sector to be sitting with a similar deal today. I believe the answer would be something like “everything I earned and then some”. A depressing and angering thought for anyone who has worked hard and paid the taxes and fees that support these grossly unfair public service union contracts.
The chapter ends with a quote from economist Murray Rothbard who the author feels has correctly captured the nature of government, “By its nature, government is not subject to the profit-and-loss test of the free market . . . . government is unique among organizations in attaining its revenue via the coercion of taxpayers. Hence government suffers no worries about losses or bankruptcy; it need serve no one except itself. The only limit on government is the enormously wide one of people rising up to refuse to obey its orders (including taxes); short of revolution, however, there is little to no limit to government or to check the entrenchment or burgeoning of its elite”
In the coming chapters Mr. Greenhut will take us through his narrative revealing the “massive transfer of wealth and power that has flowed in recent years from the private to the public sector”. This will include a look at the real nature of the public sector unions who show “increasing testiness” when faced with even modest cutbacks as the rest of us face a dire recession in our workplaces. As he observes, “their sense of entitlement apparently knows no bounds”.
Next: Chapter Two, "Unbelievable Pay and Benefits" "His retirement was guaranteed, period. Come hell or a stock market crash, it didn't matter. He understood the defined benefits he was promised, which freed up a large portion of his workaday budget for vacation homes, RV's fancy vacations and home remodeling . . . ."
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